Nirmala Sitharaman says Budget 2020 is a budget to enhance people’s purchasing power and for our businesses to be healthy. “This is a budget for every woman wanting to stand up and being counted” says #NirmalaSitharaman as she presents the budget. Follow India Budget Highlights and specific announcements on women and small businesses and entrepreneurship here.

THREE BROAD THEMES

Sitharaman picks three main themes to divide her budget announcements.

Aspirational India – all sections of society seek better standards of living

Economic development for all – Sabka Vikas plank of the government

A caring society

TAXES AND YOU

Significant relief to individual tax payer.  The NEW tax brackets are as follows

  • Rs.5-7.5 lakh – 10% now from earlier 20%
  • Rs.7.5-10 lakh – 15% now from earlier 20%
  • Rs.10-12.5 lakh – 20% now from earlier 30%
  • Rs.12.5-15 lakh – 25% now from earlier 30%
  • Above Rs.15 lakh unchanged at 30%.

Earlier Tax rates

The current tax brackets apply to the following annual income for individuals under 60.

  • Up to 250,000 rupees — no tax
  • Between 250,000 to 500,000 rupees — 5 per cent tax
  • Between 500,000 to 1,000,000 rupees — 20 per cent tax
  • Over 10,00,000 rupees — 30 per cent tax

OTHER BUDGET ANNOUNCEMENTS

  • 16 lakh tax payers added
  • Digital penetration via UPI and Digital India
  • Pro poor schemes ramped up
  • Benefits of schemes became wide ranged and not just pro elite

WELLNESS WATER AND HEALTHCARE

  • New vaccines, fit India movement and focus on awareness on lifestyle diseases

EDUCATION

  • More job oriented courses expected, more internship programs at existing universities
  • Education policy to be announced soon but timelines not offered.
  • Budget noted the widening gap between educated students and fewer job opportunities
  • More than 90,000 crores for education and 3000 crores for skill development.

EASE OF DOING BUSINESS

  • Digital refund of duties for exporters
  • Move to make every district an export hub
  • Investment clearance cell to be set up at centre, states
  • National logistics policy to be launched

INFRASTRUCTURE

  • 100 more airports to be developed by 2024
  • Archaeological sites to be developed as iconic sites

BUDGET AND HER

  • This is a budget for every woman wanting to stand up and being counted
  • An inclusive approach to health, agriculture, digital India will ensure women are part of the growth story
  • Women SHGs can avail MUDRA and NABARD assistance in agriculture. Women in the villages would keep the seed in the village and now it’s time for them to once again become Daanya Lakshmis.
  • Incentives announced for women in beekeeping.
  • Committed to doubling farmers’ incomes by 2022
  • FM announces more hospitals, health infrastructure in new districts.
  • TB harega, Desh jeetega an effort to end Tuberculosis across India by 2025
  • More job oriented courses offered but no word on new education policy and what it might entail
  • Budgets allocated for skill development

CURRENT TAX RATES

The current tax brackets apply to the following annual income for individuals under 60.

Up to 250,000 rupees — no tax
Between 250,000 to 500,000 rupees — 5 percent tax
Between 500,000 to 1,000,000 rupees — 20 percent tax
Over 10,00,000 rupees — 30 percent tax

POINTERS FOR SMALL & MEDIUM BUSINESSES

  • We want a healthy business economy

THE STATE OF THE ECONOMY

Current state of the Indian economy shows clear signs of a slowdown. It’s a challenging time for the industry and for consumption. Slump in demand in the economy has led to concerns. Economic Survey shows a drop across agriculture, services and manufacturing.

WHAT IMF SAYS

IMF has noted that the slowdown in the Indian economy is slowing the global economy. Industries both big and small have noted that their capacity to produce is much higher than the demand which means their machines and services are under utilised. This isn’t a good sign.

THE ECONOMIC SURVEY

So the Economic Survey noted some important pointers on what the economy deserves at the moment and so do businesses to revive themselves.

  • Encourage Wealth Creation
  • Enable markets
  • Strengthen Trust
  • And create Pro Business Policies.

CII President Vikram Kirloskar noted in an interview with NDTV that in a slowing economy, people are also concerned about their salaries, and increments. For the moment the challenges in the economy has led to a slowdown in hikes across industries.

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